Hamptons Sales Surge Fuels High-End Home Tear-Downs – Bloomberg 10-24-13

Salient to Investors:

Miller Samuel  and Douglas Elliman Real Estate said:

  • Hamptons real estate sales are surging, fueling a boom in knockdowns, expansions and quick resales.
  • Hamptons home purchases in Q3 rose 32 percent from a year earlier to the most for a Q3 since 2005. Luxury homes rose 14 percent in Q3 from a year earlier, ultra-luxury homes rose 21 percent, but the broader market rose less than 1 percent.
  • The supply of Hamptons homes has climbed in each of the last three quarters indicating increased competition among sellers.

Mitchell Pally at the Long Island Builders Institute said Hamptons land is worth more than the house and the bigger the house, the easier it is to sell, unlike most places where the bigger the house, the harder it is to sell. People want mainly new homes and resale of newer homes and not old traditional homes because they want more space, amenities and technological advances.

Jonathan Miller at Miller Samuel said the first stage is just seeing transactions followed by finding opportunities in properties that need significant work. Miller said the jump in quick high-end resales shows that people are confident in taking on risk, making deals before the expected increases in mortgage rates, and spurred on by record stock prices.

Hamptons home prices are up 14 percent from the bottom in Q1, 2009.

Read the full article at  http://www.bloomberg.com/news/2013-10-24/hamptons-sales-surge-fuels-high-end-home-tear-downs.html

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